Smith Resigns at TSI

NEW YORK, NY -- Mark Smith, chairman and director of Town Sports International Holdings Inc. (TSI), resigned from the company on Wednesday. He had been with TSI since 1985.

Robert Giardina, the company’s chief executive officer, has been appointed as director to fill the vacancy created by Smith’s resignation. Alexander Alimanestianu will assume the additional role of president and will continue in his role as chief development officer. The company had announced in the past that it is seeking a buyer.

Smith is leaving the company to spend more time with his family and to pursue other interests, he said. He will continue as a consultant to TSI.

TSI owns health clubs located primarily in major cities from Washington, DC north through New England, operating under the New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs brands.

The company also released its annual report showing a revenue increase of $35.6 million from 2004. Revenue for 2005 was $388.6 million while 2004 revenue was $353 million. Operating income was $40.3 million for the year ended Dec. 31, 2005, an increase from 2004 operating income of $34.3 million. Net loss decreased from 2004, sitting at $1.8 million in 2005 and $3.9 million in 2004. EBITDA was $81.6 million in 2005 compared to $72.7 million in 2004.